JPMorgan Chase ordered to pay measly $4.6 mln over checking account reports; too little too late 
JPMorgan Chase Fined $4.6 Million for Inaccurate Account Screening Reports.
These reports, similar to credit reports, are used by financial institutions to determine if an individual can open an account. Chase’s inadequate procedures for providing accurate information could have led to individuals with clean histories being turned down for bank accounts, or those with negative pasts being allowed to open them.
The Consumer Financial Protection Bureau (CFPB) found that Chase did not have proper procedures in place to ensure the accuracy of the information it provided to companies such as Certegy Check Services, ChexSystems, and Early Warning Services. The bank did not admit or deny the findings but has improved its procedures for sharing information with agencies since identifying the issue three years ago.
Chase skimming dates back to 2005.
Chase’s inadequate procedures date back to its merger in 2005, when it created insufficient procedures for reporting account information. Even after revising its guidance in 2014, the bank still did not provide workers with detailed steps for furnishing accurate information on millions of consumer accounts.
Investors should monitor JPMorgan Chase’s progress in addressing the issues raised by the CFPB and the potential impact on the bank’s reputation and financials. Inadequate procedures and failures to ensure the accuracy of the information can lead to costly fines and legal battles, making it critical for companies to prioritize accuracy and transparency in their operations. Story
Analysis
The current fines imposed on banks are inadequate and serve only as a facade to suggest that banks are held accountable for their unethical practices. However, this is far from the truth. For every dollar the banks pay in fines, they are still managing to retain almost ten dollars for themselves. The recent discovery of fraudulent accounts by Wells Fargo is a clear example of this, yet no one has been held accountable and the bank continues to operate as usual. It’s concerning that the stock is still trading close to its highs, indicating that large-scale crimes seem to be profitable. Unfortunately, this trend is gaining momentum, and it is expected to continue to rise in the future..
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